As the name suggests, Cost Management module inside Lean Suite provides a central place for monitoring, analyzing, controlling and taking action related to costs within a facility.
It provides various tools for identifying losses, analyzing them, tracking defects and visualizing savings. The main aim is to improve the financial performance by offering detailed insights and actionable data on cost-related factors.
Cost Management works in a similar manner to QA Matrix but focuses mainly on analyzing defects (both internal & external) from cost perspective.
The flowchart below covers the working of the Cost Management System:
The Analysis Part |
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Cost Management System(The Analysis Tool)
(The tool analyses the target within a given date range set by the user. The result is returned in terms of Loss Trees)
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(Returns Loss Trees as Results) | Database(The Analysis Target)
The target is a pool of data that is input into the database to be made available for analysis and return results. |
Internal Defects(Database Component 1)
Fed into the database, the internal defects are the ones present in the manufacturing process of various products. | External Defects(Database Component 2)
Fed into the database, the external defects are the ones received from the customers in terms of feedback from real world. |
The Analysis Part also returns various results in terms of savings, graphs & trends, slippage, top losses in the facility.
The Analysis results and the action part combined helps a facility gain a holistic and detailed knowledge of the financial aspect and improve it over time with definite actions. |
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The Action Part |
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Loss Trees(The Analysis Result)
(Loss Trees returned as the result of database analysis helps us identify the main loss causing areas and take an action.) | Creating a Kaizen(The Action Tool)
(The Loss Trees provide an option to create a kaizen which then takes the loss making cause and hands it over to Kaizen Management System to rectify the problem) |
Congratulations! We have successfully learned about the Cost Management System workings!
Let’s dive into Lean Suite and begin our learning for the Cost Management System!